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Providing practical insights and Q&A opportunities based on common legal challenges. The latest news and insights from Harper James including our ‘Meet the client’ interview series, case studies, legal updates, events and webinars, podcasts, videos and spotlights on our solicitors. Our solicitors are well-positioned to provide commentary on all manner of commercial legal issue and regularly contribute to both national, sector and industry press.

Are they enforceable in the case of the insolvency of the licensor/vendor of the software? Particular issues can also arise where a customer wishes to modify and adapt and possibly distribute the software and one of the more restrictive OSS licences is used. A detailed analysis of OSS issues is beyond the scope of this chapter, but in general terms where OSS is present, it will be licensed under its own terms which, while free of many of the use restrictions that apply to proprietary software, will generally contain fewer protections for a customer and be licensed on an “as is” basis. Nevertheless, the First-tier Tax Tribunal’s decision highlights the difficulties of identifying specific, individual exempt outsourced supplies within a global group context where there may also be a lack of a detailed descriptions of and separate group invoicing for the outsourced services. How to address any VAT leakage will usually involve commercial negotiation and may require looking at price adjustment mechanics if, for example, the parties are to share in or compensate a party for any increased irrecoverable VAT burden including on a change of VAT law or treatment by HMRC. On entering into an outsourcing arrangement, there may be a transfer of assets and/or part of a business to the supplier for tax purposes.

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The “special regime” contracts have differing rules (including exemptions) to the standard covered contracts that fall within the scope of the PA23. Depending on its nature and value, a public sector technology sourcing contract may be subject to the UK public procurement regime. The software licence agreement must include well-defined and clear key clauses to protect the software licensor. When licensing software to third parties, a software licence agreement is crucial. These are some typical clauses we would expect in a software licence agreement. Each software licence agreement will be unique and present its challenges and nuances.

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The parties will typically define which intellectual property (“IP”) rights belong to each party at the start of the relevant transaction (Background IP). No, the same principles generally apply across all these types of technology procurement contract. The parties are free to agree specific termination rights, which can block or extend rights implied by general law. Any termination that occurs in accordance with the terms of the contract would be justified without giving rise to a claim for damages from the terminated party. At present, there is no general duty of good faith and fair dealings in English contract law.

Our commercial lawyers are based in or close to major cities across the UK, providing expert legal advice to clients both locally and nationally. Whether you need a standalone agreement or something that complements wider licensing terms, our commercial law solicitors can help you get it right. The terms should be tailored to your product and business model – what works for a cloud-based SaaS platform will differ from a mobile app or downloadable consumer software. A commercial lawyer can guide you on each of these issues and their implications for your specific agreement. Many businesses choose click-wrap agreements to ensure users have clearly agreed to the terms, which can help with enforceability in the event of disputes.

Under Canadian law, a software license agreement is usually governed by the law specified in the agreement or, if the governing law is not specified, the law of the jurisdiction that has the most real and substantial connection to the agreement. We have presented some key considerations we see in the market in relation to contracting standard products and services. Similarly, if the product and/or service is not (easily) replaceable by another product and/or service, the customer may want to negotiate a right to terminate the agreement in case the right to use the product and/or service is terminated. Where relevant, third-party vendors could also be invited to relevant governance meetings, enabling the customer to influence a certain level of control. This could include assisting the customer with bringing a claim against the third-party vendor.

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